PDC’s 1Q losses wider than analysts’ predictions
Shares of Denver-based PDC Energy rebounded somewhat late Friday after dropping by as much as 8.39 percent earlier in the day in the wake of a first-quarter earnings report that showed greater-than-expected losses and smaller-than-expected revenue.
The independent oil and gas company (Nasdaq: PDCE), which is a significant producer of oil and natural gas in the Wattenberg Field in Northern Colorado, reported a net loss of $71.5 million, or $1.72 per share. When adjusted for one-time gains and costs, the loss was 89 cents a share. The loss was much larger than the average 9-cents-per-share loss expected by the 13 analysts surveyed by Zacks Investment Research. PDC losses also exceeded predictions in the previous quarter.
Revenue for the quarter was $90.8 million, also short of analysts’ estimates of $151.2 million. Revenue for the same quarter last year had been $144.6 million, and eight analysts surveyed by Zacks had predicted $150.9 million this time.
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PDC also reported production of 4.6 million barrels of oil equivalent, a 58 percent increase year-over-year, and crude-oil production of 20,965 barrels per day, a 44 percent increase year-over-year and representing 42 percent of total production.
The increased production primarily was attributable to continued successful horizontal fracking on the Wattenberg Field, the company said, although it added that production was impacted by the severe late-March snowstorm that resulted in widespread downtime.
“I am very pleased with the first quarter and our ability to deliver results in-line with our internal expectations despite weather-related challenges in late March,” said Bart Brookman, CDC’s president and chief executive, in a prepared statement that accompanied the earnings report. “Our operations and marketing teams continue to focus on improving margins by driving down costs and reducing our oil differentials.”
In trading late Friday, PDC shares were trading at $56.86, down more than 5.3 percent.
